Gem Aromatics
Book Building issueMainboardBSE₹451 Cr issue
0.00%
Listing gain over issue price
Issue size
₹451 Cr
1 lot at cut-off
₹14,950
Lot size
46shares
Open
19 Aug 2025
Close
21 Aug 2025
Allotment
22 Aug 2025
Listing
26 Aug 2025
Listing performance
Issue price
₹325
Listed at
₹325
Listing-day close
₹319.10
Latest price
₹135.23
Close on 23 Oct 2026
Listing gain
0.00%
Return since issue
-58.39%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 19 Aug 2025 – 21 Aug 2025
- Listing date
- 26 Aug 2025
- Face value
- ₹1 per share
- Issue price
- ₹325 per share
- Lot size
- 46 shares
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹451 Cr
- Market cap at offer price
- ₹1,698 Cr
- Promoter holding
- 75.00% → 55.06% pre-issue → post-issue
- ISIN
- INE06XZ01023
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Motilal Oswal Investment Advisors Ltd.
- Registered office
- A/410, Kailas Complex, Vikhroli Powai Link, Road, Park Site, Vikhroli (W), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 41,65,383 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 46 shares per lot, in multiples, at ₹325
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 46 | ₹14,950 |
| Retail (max) | 13 | 598 | ₹1,94,350 |
| S-HNI (min) | 14 | 644 | ₹2,09,300 |
| S-HNI (max) | 66 | 3,036 | ₹9,86,700 |
| B-HNI (min) | 67 | 3,082 | ₹10,01,650 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
41,65,383
Anchor portion
₹135 Cr
at ₹325 per share
Valuation and performance
Valuation at offer price
₹325 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 11.39 | 10.22 |
| P/E (×) | 28.53 | 31.80 |
| Price to book (×) | 5.36 | — |
| Market cap | — | ₹1,698 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 18.80%
- ROCE
- 16.02%
- Debt / equity
- 0.78
- PAT margin
- 10.56%
- EBITDA margin
- 17.55%
- NAV per share
- ₹60.61
- Price to book
- 5.36
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Gem Aromatics
Gem Aromatics Limited was incorporated as a private limited company on October 3, 1997, and converted to a public limited company in August 2023. The company is a manufacturer of specialty ingredients with a track record spanning over two decades. It offers a diversified portfolio of products ranging from Mother Ingredients to various Value-Added Derivatives. The company generates revenue across multiple product categories: mint and mint derivatives (69.12% of revenue in Fiscal 2025), clove and clove derivatives (18.90%), phenol (2.80%), and other synthetic and natural ingredients (7.39%). Products are manufactured at facilities in Badaun, Uttar Pradesh and Silvassa, Dadra and Nagar Haveli, with a subsidiary facility in Dahej, Gujarat. The company serves both domestic and international markets, with approximately 50.66% of revenue in Fiscal 2025 derived from 22 foreign countries.
Company Analysis
from RHPGem Aromatics Limited is an established manufacturer of specialty ingredients including essential oils, aroma chemicals, and value-added derivatives with applications across oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness and personal care industries.
Gem Aromatics Limited was incorporated as a private limited company on October 3, 1997, and converted to a public limited company in August 2023. The company is a manufacturer of specialty ingredients with a track record spanning over two decades. It offers a diversified portfolio of products ranging from Mother Ingredients to various Value-Added Derivatives. The company generates revenue across multiple product categories: mint and mint derivatives (69.12% of revenue in Fiscal 2025), clove and clove derivatives (18.90%), phenol (2.80%), and other synthetic and natural ingredients (7.39%). Products are manufactured at facilities in Badaun, Uttar Pradesh and Silvassa, Dadra and Nagar Haveli, with a subsidiary facility in Dahej, Gujarat. The company serves both domestic and international markets, with approximately 50.66% of revenue in Fiscal 2025 derived from 22 foreign countries.
specialty chemicalsessential oilsaroma chemicalsoral carecosmeticsnutraceuticalspharmaceuticalswellnesspain managementpersonal care
Objects of the Issue
- Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company and our Subsidiary, Krystal Ingredients Private Limited ₹ 1,400.00 million p.25
- General corporate purposes [●] million (not exceeding 25% of the Gross Proceeds from the Fresh Issue) p.25
- Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company and our Subsidiary, Krystal Ingredients Private Limited ₹1,400.00 million p.119
- General corporate purposes p.119
Issue Structure
- Total Issue
- Up to [●] Equity Shares of face value of ₹ 2 each aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares of face value of ₹ 2 each aggregating up to ₹ 1,750.00 million
- Offer for Sale
- Up to 8,500,000 Equity Shares of face value of ₹ 2 each aggregating up to ₹ [●] million
- Price Band
- [●] per Equity Share (Floor Price) to [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares of face value of ₹2 each and in multiples of [●] Equity Shares of face value of ₹2 each thereafter
- Face Value
- ₹ 2 per Equity Share
Business Model
The company manufactures and sells specialty chemical ingredients to customers on a purchase order basis. Revenue is generated through sale of Mother Ingredients and Value-Added Derivatives across multiple product categories. The company does not have exclusive distribution arrangements; instead, it serves customers who place orders for desired quantities and pricing. A significant portion of revenue (56.06% in Fiscal 2025) comes from the top 10 customers, with the largest customer being dōTERRA Global Limited, contributing 7.97% of revenue. The company sources raw materials from suppliers, with top 10 suppliers accounting for 52.92% of total expenses in Fiscal 2025.
Business Segments
Products derived from mint raw materials used in oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness and personal care applications
Products derived from clove raw materials used in various industrial applications
Synthetic chemical ingredient
Includes eucalyptus, eucalyptol, lemon grass and other ingredients
Manufactures mint-based specialty ingredients and their derivatives
Manufactures clove-based specialty ingredients and their derivatives
Manufactures phenol specialty ingredients
Manufactures other synthetic and natural specialty ingredients
Manufacture and sale of peppermint oil, menthol, spearmint, and other mint-derived products used in food & beverages, pharmaceuticals, cosmetics, personal care, and tobacco applications
Manufacture and sale of clove oil, eugenol, and other clove-derived products for use in food & beverages, pharmaceuticals, and personal care applications
Manufacture and sale of anethole and other phenol-based products for use in food & beverages, cosmetics, and pharmaceuticals
Manufacture and sale of eucalyptus oil, eucalyptol, lemongrass, and other specialty chemical products
Includes mentha arvensis and isomers, mentha piperita and isomers and all other natural identical and synthetic products synthesized. Used in oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness and pain management and personal care.
Includes clove oil rectified and eugenol derivatives. Used in oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness and pain management and personal care.
Includes anethole launched in 2023. Used in oral care.
Includes eucalyptus oils, eucalyptol, lemongrass oils, and miscellaneous products such as turmeric oil and pomegranate seed oil. Used in oral care, cosmetics, nutraceuticals, pharmaceuticals, wellness and pain management.
The Group is primarily engaged in the manufacture and sale of specialty ingredients and chemicals, including essential oils, aroma chemicals, and value-added derivatives, as well as natural identical and synthetic products used in the flavour & fragrance industry. All sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch/ delivery.
Manufacture and sale of mint and mint derivatives products
Manufacture and sale of clove and clove derivatives products
Manufacture and sale of phenol products
Manufacture and sale of other synthetic and natural ingredients including eucalyptus, eucalyptol, lemon grass, amongst others
SWOT Analysis
Strengths
- • Established manufacturer with over two decades of track record in specialty ingredients and essential oils(p.129)
- • Dominant presence in essential oil-based products and derivatives in India(p.129)
- • Wide product range of 70 products across four categories with continuous R&D(p.129)
- • Long-standing relationships with well-established Indian and global customers(p.129)
- • Strategically located manufacturing facilities with focus on cost reduction and sustainability(p.129)
- • Experienced promoters and management team with long association(p.129)
- • Strong financial performance with consistent profitability and positive returns(p.130)
- • Established market leader in essential oils and value-added derivatives, especially mint and clove-based products(p.222)
- • Diversified portfolio of 70 products across four product categories with continuous R&D capabilities(p.222)
- • Long-standing customer relationships with marquee FMCG and F&F companies providing revenue stability(p.228)
- • Strategically located manufacturing facilities with proximity to raw materials and key ports(p.229)
- • Advanced manufacturing capabilities with automation, process expertise, and quality certifications(p.230)
- • Experienced promoters and management team with over two decades in specialty ingredients industry(p.222)
- • Backward and forward integration capabilities reducing manufacturing costs and increasing margins(p.227)
- • Established manufacturing infrastructure with three facilities and advanced technologies(p.237)
- • Prominent position in essential oils and value-added derivatives manufacturing in India(p.234)
- • Diverse product portfolio across four categories with specialized capabilities(p.234)
- • Green manufacturing capabilities reducing environmental impact and costs(p.232)
- • Strong R&D capabilities with qualified team capable of handling complex chemistries(p.241)
- • Long-standing customer relationships providing stability and growth opportunities(p.243)
- • Multiple quality certifications demonstrating adherence to international standards(p.243)
- • Established manufacturing presence across multiple locations in India(p.302)
- • Diversified product portfolio in essential oils and aroma chemicals(p.302)
- • Strong revenue growth trajectory(p.299)
- • Improved profitability with rising net profit(p.299)
- • Substantial shareholding by promoters provides stability(p.320)
Weaknesses
- • Uninsured assets represent 35.96% of total assets; insurance coverage may not be adequate(p.48)
- • Company logo trademark application is objected and registration may not be granted(p.48)
- • Dependency on key customers; overseas operations represent 50.66% of FY2025 revenue, creating geographic concentration risk(p.54)
- • High working capital requirements and substantial capital expenditure; had outstanding borrowings of ₹2,598.42 million as of June 30, 2025(p.55)
- • Outstanding legal proceedings exist; contingent liabilities of ₹581.88 million as of March 31, 2025(p.60)
- • Promoter Vipul Parekh unable to trace educational qualification documents; only duplicate certificate application filed(p.63)
- • Significant delays in statutory dues payments; interest accrued on late TDS payments up to 167 days(p.64)
- • Trade receivable days increased to 69 days as of March 31, 2025 from 51 days prior year; trade receivables are 27.98% of revenue(p.59)
- • Company unable to trace historical corporate records and share transfer documentation(p.42)
- • Subsidiary Krystal Ingredients with negative net worth and past losses(p.124)
- • High debt burden with net debt to total equity of 0.78 times(p.133)
- • High working capital cycle of 205.61 days indicating significant cash conversion challenges(p.133)
- • Funding requirements and deployment of Net Proceeds not appraised by independent agency(p.41)
- • Concentrated customer base with dependence on few key customers(p.129)
- • Customer concentration risk with top 5 customers representing over 38% of FY2025 revenue(p.229)
- • Increasing net debt-to-equity ratio rising from 0.36x to 0.78x over three years(p.225)
- • High working capital cycle of 205.61 days, indicating cash flow challenges(p.225)
- • Declining profitability metrics with PAT margin falling from 11.03% to 10.56%(p.225)
- • Significant production concentration in Budaun Facility representing majority of capacity(p.224)
- • High dependence on single largest customer dōTERRA(p.259)
- • Concentration of manufacturing in three facilities creating operational risk(p.231)
- • Dependency on third-party transportation providers for raw materials and finished products(p.244)
- • Subordinated subsidiary with negative net worth and accumulated losses(p.263)
- • Wilful defaulter status of certain Promoter Group members(p.288)
- • Significant increase in debt burden(p.322)
- • Rapid increase in working capital borrowings(p.322)
- • High leverage with gearing ratio deterioration(p.340)
- • Significant contingent liabilities from regulatory disputes(p.345)
- • Dependence on few key customers(p.345)
- • Declining cash position(p.318)
Opportunities
- • Growing demand for fragranced personal care, laundry care, and household care products; India attracting global manufacturing companies(p.50)
- • Expansion of manufacturing capacities and entry into new export markets; currently exporting to 18 countries(p.54)
- • Expansion of existing customer accounts and geographic footprint through strategic growth initiatives(p.57)
- • R&D facility with state-of-the-art machinery enabling product development and market adaptation(p.52)
- • India emerging as fastest growing large economy with 6.5% average growth through FY2029(p.156)
- • Expanding global specialty chemicals market growing at 5-6% CAGR to reach USD 1,257 Bn by 2030(p.160)
- • Rising per capita income in India supporting consumer spending and product demand(p.157)
- • Burgeoning Indian middle class with 1,375 million projected by CY2040(p.158)
- • Capacity expansion in citral production at Dahej Facility(p.129)
- • Growing pharmaceutical API market at 6-7% CAGR to reach USD 270-290 Bn by 2028(p.160)
- • Global essential oils market growing at 6.0-8.8% CAGR with India positioning as 75% of global mint oil production(p.191)
- • Growing demand for natural and sustainable ingredients driven by health and wellness trends globally(p.178)
- • India positioned to capture share from China amid geopolitical diversification and 'China+1' strategy(p.164)
- • Indian specialty chemicals sector growing at 10-12% CAGR with global companies investing in India(p.167)
- • Expansion into forward-integrated products including MEHQ, Guaiacol, 4MAP with higher margins(p.227)
- • India's F&F market expected to grow from USD 2.7 Bn (2025) to USD 4.1 Bn (2030) at 8.5% CAGR(p.186)
- • Growth in oral care, home care, and FMCG segments with sustained demand for specialty chemicals(p.175)
- • Expansion of manufacturing capacity to meet rising consumer demand(p.231)
- • India's rapid urbanization driving FMCG and consumer spending growth(p.231)
- • Growing demand for natural, effective and organic flavours and fragrances(p.231)
- • Expansion of product portfolio with new categories including cooling agents(p.231)
- • Global shift from Chinese production to Indian manufacturers(p.231)
- • Expanding international presence and geographical footprint(p.234)
- • Enhanced stringent regulatory standards driving quality production in India(p.231)
- • Expansion of export markets with growing international demand(p.345)
- • Capacity expansion through capital work in progress(p.313)
- • Domestic market growth potential(p.345)
- • Vertical integration through subsidiary expansion(p.302)
- • Growing trade receivables indicating increased business volume(p.316)
Threats
- • Overseas operations exposed to complex management, legal, tax and economic risks; 50.66% of FY2025 revenue from overseas(p.54)
- • Increased trade controls and sanctions affecting ability to sell products and make filings; escalation of India-Pakistan and Russia-Ukraine tensions(p.54)
- • Manufacturing facilities dependent on basic infrastructure (fuel, electricity); power and fuel expenses represent 0.82% of total expenses(p.53)
- • Reliance on third-party transportation; past damages/losses of ₹2.13 million incurred during transit despite insurance(p.54)
- • Competitive environment with pricing pressures from existing players and new entrants; competitors may have larger resources(p.58)
- • Inventory management challenges; inventory days at 165 days as of March 31, 2025; inability to accurately forecast demand(p.51)
- • Subject to strict quality requirements; failure to comply may lead to product recalls and loss of customers(p.49)
- • Regulatory and licensing dependencies; currently have pending applications for renewal of NOC, water consent, and drug license(p.49)
- • Unfavorable weather patterns affecting raw material availability and demand for products; monsoon dependency in agriculture sector(p.73)
- • Global macroeconomic risks including inflation, interest rates, and financial market disruptions affecting business operations(p.74)
- • Global chemicals market growth moderating to 4.4% CAGR from 3.4% with geopolitical tensions(p.159)
- • US tariff risks under Trump presidency potentially impacting global trade(p.156)
- • Commodity chemicals market competition with more than 85% fragmented among smaller players(p.160)
- • Specialty chemicals sector affected by high costs of energy and feedstock(p.160)
- • Unfavourable drug price control policies and high manufacturing costs restraining pharmaceutical API growth(p.160)
- • China accounting for 41-43% of global chemicals market with competitive cost advantage(p.158)
- • Raw material supply and quality variability, particularly for natural agricultural inputs(p.189)
- • Price volatility and currency fluctuations in global commodity markets impacting margins(p.189)
- • Intense competition from global players and Chinese suppliers with cost advantages(p.226)
- • Regulatory changes and stringent environmental compliance requirements affecting operations(p.161)
- • Weather dependency and crop cycle volatility affecting primary raw material availability(p.189)
- • Counterfeit products threatening market integrity and brand value(p.189)
- • Dependence on natural raw materials subject to seasonality and depletion risks(p.241)
- • Supply disruption risks from imported raw materials(p.241)
- • Hazards inherent in storing and transporting products including fire and explosions(p.244)
- • Potential inadequacy of insurance coverage for operational risks(p.244)
- • Intense competition from organized and unorganized sectors(p.245)
- • Lease renewal risks for critical properties including manufacturing facilities(p.247)
- • Exposure to foreign exchange volatility(p.339)
- • Interest rate risk on floating rate borrowings(p.340)
- • Regulatory and customs compliance risks(p.345)
- • Raw material cost volatility(p.324)
- • Inventory management challenges(p.316)
- • Liquidity constraints despite access to credit facilities(p.300)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Vipul Parekh | Promoter/Promoter Selling Shareholder | 26.58% | — |
| Kaksha Vipul Parekh | Promoter/Promoter Selling Shareholder | 12.73% | — |
| Yash Vipul Parekh | Promoter/Promoter Selling Shareholder | 13.07% | — |
| Parekh Family Trust | Promoter | 22.62% | — |
| Vipul Parekh | Promoter | 26.58% | — |
| Kaksha Vipul Parekh | Promoter | 12.73% | — |
| Yash Vipul Parekh | Promoter | 13.07% | — |
| Parekh Family Trust | Promoter Group | 22.62% | — |
| dōTERRA Enterprises, Sàrl | Investor Selling Shareholder | 25.00% | — |
| Vipul Parekh | Promoter and Director | — | — |
| Kaksha Vipul Parekh | Promoter and Director | — | — |
| Yash Vipul Parekh | Promoter | — | — |
| Vipul Parekh | Promoter | 26.58% | — |
| Kaksha Vipul Parekh | Promoter | 12.73% | — |
| Yash Vipul Parekh | Promoter | 13.07% | — |
| Parekh Family Trust | Promoter Group | 22.62% | — |
| Vipul Parekh | Promoter | 26.58% | — |
| Yash Parekh | Promoter | 13.07% | — |
| Kaksha Vipul Parekh | Promoter | 12.73% | — |
| Parekh Family Trust | Promoter Group | 22.62% | — |
| Doterra Enterprises, SARL | Promoter | 25.00% | — |
| Vipul Parekh | Promoter | — | — |
| Vipul Parekh | Promoter Selling Shareholder | — | — |
| Kaksha Vipul Parekh | Promoter Selling Shareholder | — | — |
| Yash Vipul Parekh | Promoter Selling Shareholder | — | — |
| dōTERRA Enterprises, Sàrl | Investor Selling Shareholder | — | — |
Leadership
Vipul Parekh · Chairman and Whole-Time Director
Yash Vipul Parekh · Managing Director and Chief Executive Officer
Kaksha Vipul Parekh · Whole-Time Director and Chief Financial Officer
Pooja Padam Bhandari · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Gem Aromatics IPO FAQs
What is the lot size of Gem Aromatics IPO?
The minimum lot size of Gem Aromatics IPO is 46 shares. One lot costs ₹14,950 at the cut-off price.
When does Gem Aromatics IPO open and close?
Gem Aromatics IPO opened for subscription on 19 Aug 2025 and closed on 21 Aug 2025.
What is the listing date of Gem Aromatics IPO?
Gem Aromatics IPO listed on 26 Aug 2025.